Home | Caution urged ahead of guidance on EU procurement ruling

Caution urged ahead of guidance on EU procurement ruling

12 June 2009

Planning and procurement specialists at national law firm Shoosmiths have urged caution ahead of government guidelines aimed at clarifying European law on development scheme procurement.

Partners Iain Gilbey (planning) and Peter Andrews (procurement) said that while Office of Government Commerce (OGC) guidance set to be published later this month promises clarity and suggests flexibility, the OGC may have ‘limited room to manoeuvre in the face of EU law'.

A 2007 EU ruling on a project including a cinema, office block and hotel project in France was understood to mean all local authority developments had to be put out to competitive tender.

Reports that OGC guidance to be published later this month will suggest that competitive tendering is only necessary where public money is used, or where ‘public sector facilities’ are involved.

“The scheme in France was caught by the ruling because it was specified by a local authority,” said Andrews. “The court specifically said that the ‘commercial’ elements were caught, as well as the ‘public sector’ parts.

“So the OGC is up against EU law that makes clear it is not just full-blown public sector schemes that are affected. This leaves the OGC limited room to manoeuvre.

“And despite the ruling being unwelcome two-years-ago – and the reason many projects in the UK have been put on hold – there has been a degree of consensus about what it means.” 

Gilbey said: “In these uncertain economic times, any relaxation of the rules is to be welcomed, but it will be interesting to see how OGC seeks to overcome the EUs requirements without coming into direct conflict.”

For further information please contact:
Name: Alastair Gray
Phone: 03700 864096
Email: Alastair.Gray@shoosmiths.co.uk

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